SAN FRANCISCO, June 07, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges FAT Brands Inc. (NASDAQ: FAT, FATBB, FATBP, FATBW) investors who suffered substantial losses to take action now by submitting your losses here.
| Class Period: Mar. 24, 2022 – May 10, 2024 | |
| Lead Plaintiff Deadline: Aug. 6, 2024 | |
| Visit: www.hbsslaw.com/investor-fraud/fat | |
| Contact the Firm Now: | FAT@hbsslaw.com |
| 844-916-0895 | |
FAT Brands Inc. (FAT, FATBB, FATBP, FATBW) Class Action:
The complaint alleges that FAT made misstatements and failed to disclose that its current Chairman and former CEO Andrew A. Wiederhorn received improper payments from it, thereby exposing the company to criminal liability.
In the past FAT has disclosed- and given repeated assurances- that it was cooperating with the U.S. Department of Justice and SEC in their investigations of the company’s transactions with Wiederhorn “as well as compensation, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family” from the company and its Dec. 2020 merger partner (Fog Cutter Capital Group, or “FOG”). The company also repeatedly assured investors that its financial statements were accurate and its internal controls over financial reporting were sufficient.
The truth which emerged on May 9, 2024 tells a much different story. That day, the DOJ unveiled a grand jury criminal indictment of FAT, Wiederhorn, tax advisor William J. Amon, and FAT CFO Rebecca D. Hershinger. The indictment alleges, in part, that “Wiederhorn caused defendant FAT and FOG to extend, maintain, and forgive approximately $47 million in compensation to him in the form of sham shareholder loans, which he and defendant Amon knew were ‘disguised compensation[.]’”
The indictment also alleges that after FAT and Wiederhorn learned on or around Dec. 1, 2021 that Wiederhorn was a target of a federal criminal investigation into the company’s and Wiederhorn’s financial dealings, members of the company’s board of directors communicated with the government about its investigation and that on or around Mar. 28, 2023, Wiederhorn removed all directors other than himself and stacked the board with a majority of non-independent directors under his control.
This news sent the price of FAT Class A and B shares, Series B Preferred shares, and Warrants crashing lower on May 10, 2024.
“Our investigation centers on the extent to which FAT understated its compensation expenses and overstated earnings metrics,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in FAT and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the FAT case and our investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
